by rapid101 » 29 Jun 12, 11:32 pm
Actually, their revenue would be in the vicinity of $20-40 for the sale (I don't remember how much Prototype sold for), taking out Steam's cut (was it 30%?) or brick and morter.
Factoring in not just development costs, but shipping, web server costs to handle traffic, all the taxes paid on employees ($100,000-300,000 per person not counting executives), the money lost from not investing elsewhere (gotta make the average joe/shareholder happy; Activision probably regret not pumping it into BLOPS 2) over the 4 years or so @ 10% each year, platform rights for the 3 major ones and the enhanced development costs for this (although hopefully the individual platforms, especially PC, made back the cost invested into them).
TL;DR, money.
Until I check Activision's FS for that year I think it made a profit, just not an acceptable one at 10% RoI or the likes.
Not to forget they never got around to grossness that is DLC surprisingly.
However, I still think it was gross mismanagement, even though 90 employees is 4 million+ territory. Or it could simply be 'metacritic not high enough' even though reviews are purely subjective and I base a game on its reputation not a number.
Actually, I reckon there was a conflict of interest, as all their games have been successful; maybe because their modern warfare/CoD team would be working for cheap as chips (the games aren't innovative; just winning on reputation alone) and would expect that from all their studios, whereas something like Prototype would be the big seller for any other studio.